Schulte v. Benton Savings & Loan Ass'n

Frank Holt, Justice.

The issue in this case involves the enforceability of a “due on sale” clause in a mortgage where the mortgagee is a state chartered savings and loan association. The case is certified to us by the Court of Appeals pursuant to the Rules of the Supreme Court and Court of Appeals, Rule 29 (1) (c) and (4) (d).

In 1977, the appellant Ballard Construction Company executed a promissory note payable to the appellee and secured by a mortgage on commercial real property. Included in the mortgage contract was the following due on sale clause:(j) Acceleration. The maturity of the…